With a population nearly the size of a Big Six city and a large concentration of young people, Surat has a $34 billion consumption market, ahead of Ahmedabad and Pune.
Three magical things have done the miracle -- in addition to its close proximity to Mumbai.
** Diamond trade
** Upward mobility of migrant population.
And of course, the city's textile-led entrepreneurship.
Surat's average household consumption is also higher than Bengaluru’s, according to 'The Many Urban Indias' report.
It's not merely Modi-bhakti !!
This is a Milestone in itself.
Surat, along with Chandigarh, Thiruvananthapuram and Vadodara, has higher per-household spending than the Big Six.
Surat's pools of middle- and high-income households are not only among the largest in India but also among the fastest growing.
Moveover Mumbai or Bengaluru .... Surat is becoming India's new spending hub
The Gujarat-based business hub has a population nearly the size of a Big Six city (Mumbai, Bengaluru, Delhi, Chennai, Hyderabad and Kolkata).
There is also a large concentration of young people and hence Surat has emerged as India's largest consumption market
.... outside the six megacities.
Gujarat Model .. still works ... and 'works' for better in Surat
It may may rank seventh among India’s top consumption markets, but it is the biggest market outside the country’s six megacities.
That makes the Gujarat city an important marker of how India’s spending is spreading beyond its traditional metropolitan centres.
We all know -- India’s consumption story has been told through the lens of its biggest metros;
Mumbai, Bengaluru, Delhi, Chennai, Hyderabad and Kolkata.
But a new consumption map is emerging, and Surat is at the centre of it.
Some of while re-discovering 'Modiland' :::
Surat has a $34 billion consumption market, ahead of Gujarat's own Ahmedabad and Pune in Maharashtra.
The top 15 cities, each with consumption markets of at least $10 billion, together account for roughly two-thirds of consumption across the 100 cities studied.
Be careful to note that -- Mumbai or Bengaluru are being overtaken in absolute consumption.
The 'Big Six' still account for 46% of the $844 billion annual consumption across the 100 cities.
But Surat shows that India's biggest consumption opportunities are no longer confined to the traditional metros.
Surat’s rise is part of a wider shift in India’s urban economy.
However, Surat is not alone in standing out on consumption. Chandigarh and Thiruvananthapuram have the highest average household consumption -- backed by high savings and low debt.
The top 100 cities house less than one-fifth of the country's population
--- but they account for nearly one-third of national consumption, worth Rs 74.5 lakh crore or $844 billion.
Household expenditure in these cities has been growing at 10.4% annually, compared with 8.5% for India as a whole.
Surat stands out because it combines a large population with unusually strong household spending.
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| Chandigarh |
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| Thiruvananthapuram |
The city is classified as a "Boomtown" — one of 19 fast-growing cities.
Of course this list includes Pune, Ahmedabad,
Lucknow, Coimbatore,
Jaipur, Indore and Vadodara.
These cities are becoming the next major pool of consumer markets because they combine sizeable populations with high spending per household.
A large consumer market needs more than people. It needs households with rising incomes and enough financial headroom to spend.
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| A popular mall in Surat |
Bengaluru and Chandigarh have India's highest average household income at around Rs 28 lakh.
Pune, Thiruvananthapuram and Surat sit ahead of three of the Big Six megacities on this.
Surat's average household income is higher than those in Hyderabad, Chennai and Kolkata.
ends
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